The Duty of Due Consideration in the Anthropocene: Climate Risk and English Directorial Duties
Carbon & Climate Law Review (2017) 11(2) 90-99
Posted: 26 Jun 2019
Date Written: June 23, 2017
Abstract
Companies are responsible for a large amount of greenhouse gas emissions, and these externalities are, for the most part, not being internalised by these entities. However, the risks and opportunities for companies due to climate change in the Anthropocene have begun to materialise more clearly, and the magnitude, particularly of risks, to some companies have focused the attention of investors, and as a result, directors, on climate change. Company law, therefore, may provide a mechanism through the duty of due consideration in Section 172 of the UK Companies Act 2006, combined with the obligation to disclose material risks, for directors to pay more significant attention to climate change issues as they impact their companies.
Keywords: directors' duties, climate change, s173 Companies Act 2006
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